What are the most effective strategies for real estate agents in 2026?

The most effective strategies include focusing on a niche, leveraging social media and video, expanding service offerings, and using AI-powered tools to streamline workflows and outreach.

Why is niching down important for real estate agents today?

Niching helps agents stand out in a competitive market by pursuing specific client types or opportunities, allowing them to build authority and attract higher-quality prospects.

How are agents using AI in real estate workflows?

Agents are using AI to automate repetitive tasks, generate marketing content, improve follow-ups, analyze property data, and identify high-intent opportunities faster.

Is video marketing still important for real estate agents?

Yes, video continues to be one of the highest-performing content formats, especially short-form videos on platforms like Instagram, TikTok, and YouTube, which drive higher engagement and reach.

How can agents generate more opportunities in a competitive market?

Agents can combine accurate property information with proactive outreach strategies such as calling, email campaigns, and targeted follow-ups to create opportunities before they reach the open market.

What role do all-in-one real estate platforms play in 2026?

All-in-one real estate platforms like PropStream help agents manage the entire workflow, from accessing property records and identifying opportunities to launching outreach campaigns through calling, email, and postcards in one place.

Pre-Foreclosure Activity Is Increasing. Here's What Agents May Want to Do Next

Try PropStream for 7 Days Free!

Try it Free!

Get a summary of this article with your favorite AI:

ChatGPT Perplexity Grok Google AI Claude DeepSeek

Disclaimer: PropStream does not offer legal advice. This article is for informational purposes only. We recommend conducting your own research or consulting legal professionals before contacting homeowners in pre-foreclosure.

Quick Answer: Pre-foreclosure activity is rising across the U.S. For real estate agents, this creates an opportunity to reach out to affected homeowners with empathy and expertise, helping them explore options like selling, refinancing, and loan modification.

While a pending foreclosure can be an incredibly challenging time for homeowners, it often marks a critical window where they still have the power to create a new path forward.

As a dedicated real estate professional, you have the unique opportunity to step in as a trusted guide. By reaching out with empathy and expertise during the pre-foreclosure stage, you can help homeowners explore meaningful solutions—like selling on their terms or finding ways to keep their home—long before a crisis becomes unavoidable.

The recent rise in pre-foreclosure activity is more than just a market trend; it’s a call to action to connect with your community and provide the support they truly need. Read on to discover how you can turn these challenges into opportunities for guidance and resolution.

Key Takeaways:

Foreclosure filings are climbing fast. U.S. foreclosure activity rose 21% year-over-year in the first half of 2026, driven partly by higher mortgage rates, rising insurance costs, and broader economic strain.
Pre-foreclosure is a window of opportunity. Homeowners in pre-foreclosure still have options like selling, refinancing, and loan modification. By reaching out early, you can help them navigate those choices.
Agents who combine local market data, sensitive outreach, and resources like PropStream’s Intelligence Assistant are best positioned to help homeowners while growing their business.

What Is a Pre-Foreclosure?

Home owner at crossroads - What is pre foreclosure

Pre-foreclosure is the period between when a homeowner defaults on their mortgage (typically after missing three consecutive payments) and when the lender forecloses on the home. It’s a critical window during which foreclosure is looming, but can still be avoided with the right steps.

As an agent, you can contact homeowners in pre-foreclosure and offer to help them. For example, you could list their house so they can sell it on their terms, pay off their loan, avoid credit damage, and put any leftover sale proceeds toward a new, more affordable home.

However, don’t confuse pre-foreclosure with foreclosure itself. Here are the main differences:

Pre-Foreclosure vs. Foreclosure
	Pre-Foreclosure	Foreclosure
Ownership	Homeowner still legally owns and occupies the property.	The lender assumes ownership
Trigger	Homeowner defaults on mortgage (typically after 3 missed payments).	The lender has issued the necessary default notices and moves to reclaim the property.
Homeowner’s options	Can sell the home, negotiate a loan modification, or resolve the debt by paying the past-due amount.	Homeowner options are limited. Some states offer redemption periods in which homeowners can reclaim the property if they pay the mortgage debt plus fees.
Timeline	Can last weeks to months, depending on the lender and state laws.	Often concludes with a set auction date or bank repossession.
Credit impact	Credit damage happens, but it can be minimized if it is resolved.	Severe, long-lasting credit damage. A completed foreclosure can stay on record for up to 7 years.

Pro Tip: When a homeowner defaults on their mortgage, the lender typically files a public notice. PropStream lets you filter properties with default notices such as Lis Pendens, Notice of Default, Notice of Sheriff’s Sale (Auction), or Notice of Trustee’s Sale (Auction).

Is Pre-Foreclosure Activity Really Increasing?

Top States with atleast 500 pre foreclosure filing in 2026

Yes, the number of U.S. foreclosure filings (default notices, scheduled auctions, or bank repossessions) rose to 227,548 in the first half of 2026. That’s up 21% from the same period last year and up 28% from the same period two years ago.

Among states with at least 500 foreclosure filings in the first half of 2026, the largest year-over-year increases in foreclosure activity occurred in Idaho (up 59%), Colorado (up 57%), Georgia (up 52%), North Carolina (up 47%), and Mississippi (up 45%).

Such financial strain may be due to:

Higher mortgage rates: The average 30-year fixed mortgage rate jumped from 2-3% to 6-7% between 2021 and 2022. Homeowners who bought or refinanced a house since then may face higher monthly payments.
Higher homeowners' insurance costs: A rise in natural disasters has pushed up home insurance costs in recent years. Between 2018 and 2024, they increased 18% in the Northeast, 25% in the Midwest, 27% in the Southeast, and 43% in the West.
Other economic pressures: Inflation, higher costs of living, and other economic strains can make it harder for homeowners to keep up with mortgage payments.

Pro Tip: You can filter pre-foreclosure leads by market, county, or zip code with PropStream’s dedicated Pre-Foreclosure Lead List, resulting in highly focused lists.

Why This Matters for Real Estate Agents

For real estate agents, the recent rise in foreclosure activity presents unique opportunities to educate homeowners on their options. After all, those in pre-foreclosure often need guidance. The sooner you start a conversation with them, the sooner you can help them pursue the best path forward, whether that’s applying for a loan modification or listing their home for sale.

Five Things Agents Should Consider Doing Next

Five Things Agents Should Consider Doing Next when pre foreclosure activity is increasing

Now that you understand what an increase in pre-foreclosures means for agents, consider these steps:

1. Monitor Pre-Foreclosure Activity in Your Market

Instead of relying on national headlines, follow trends in your local market.

For example, monitor county-level foreclosure statistics and search for pre-foreclosure leads by specific ZIP codes and neighborhoods. PropStream makes this easy with Lead Automator, which alerts you anytime a new lead meets your client's (pre-foreclosure) investment criteria.

2. Reach Out with Empathy

Once you’ve qualified some pre-foreclosure leads, reach out to them with empathy. After all, this can be a stressful time for them, so it’s important to take a sensitive approach. Avoid aggressive sales language and educate them on their options before pitching your services.

With PropStream, you can easily contact leads by sending a piece of direct mail (e.g., postcard or letter), email, or dialing campaign. Pick the outreach channel(s) that best suit you and your ideal prospect, but don’t forget to personalize each message.

Pro Tip: PropStream Connect is an add-on bundle that combines PropStream’s marketing tools. Enjoy free skip tracing* and Lead Automator access, Click-to-Dial, Dialer Campaign, and discounted direct mail! Try it for 14 days free.

3. Understand Available Options

Know the options that pre-foreclosure homeowners have, including:

Selling traditionally: This gives homeowners the chance to sell on their terms and preserve their equity.
Refinancing: When appropriate, refinancing may help pre-foreclosure homeowners lower their monthly payments.
Loan modification: Many lenders are willing to work with struggling borrowers by modifying their loan terms.
Short sale: Some lenders may agree to a short sale, where the homeowner sells the property for less than their outstanding mortgage debt.
Repayment plans: A lender-approved repayment plan could help the homeowner get back on their feet by spreading the outstanding mortgage debt over a set period.

Important: Don’t attempt to provide legal or financial advice to pre-foreclosure leads. Encourage them to consult qualified professionals instead.

4. Use Data to Prioritize Outreach

Consider prioritizing pre-foreclosure leads by additional potential selling motivations.

For example, on top of filtering leads by pre-foreclosure status, you could filter them by:

Equity level
Owner occupancy
Years owned
Property condition
Absentee ownership (where relevant)

Leads with multiple selling motivations may be more likely to be interested in your agent services. And with PropStream, you can easily stack search filters.

5. Prepare for Meaningful Conversations using AI

Lastly, use PropStream’s Intelligence Assistant to prepare for conversations with leads. It can:

Summarize a property’s history
Identify potential selling points
Explain ownership details
Answer questions about property characteristics

That said, the Intelligence Assistant and other AI tools are just tools, not a replacement for your expertise and human touch.

Common Mistakes to Avoid

To get the most out of working with pre-foreclosure leads, avoid these common pitfalls:

By the time a home reaches auction, the homeowner’s options have narrowed dramatically. Reaching out during the earliest stages of pre-foreclosure is when you can help the most.

Not every pre-foreclosure homeowner has the same needs and wants. Some may want to sell quickly, while others hope to keep their home through a loan modification. Tailor your approach.

Homeowners in pre-foreclosure are often already anxious about losing their home. Scare tactics can feel exploitative and damage your reputation.

Foreclosure regulations and timelines vary by jurisdiction. Not understanding them can cause you to give homeowners wrong information or miss the window to reach out in the first place.

Contacting distressed homeowners is subject to federal and state regulations. They may require you to make specific disclosures or restrict how and when you can contact homeowners. Research your local telemarketing regulations or consult a local attorney to learn more.

Reaching out without understanding a property’s details can make you look unprofessional. Do your homework so you can speak knowledgeably about the homeowner’s situation.

Conclusion

Rising pre-foreclosure activity is more than a statistic. It’s an opportunity to provide meaningful guidance to affected homeowners. If you show up at the right time with genuine help, you could make a real difference.

Ultimately, those who combine local market data, ethical outreach, and intelligent property research will be better positioned to help homeowners while building long-term business.

Start a 7-day free trial of PropStream to monitor pre-foreclosure activity, identify market opportunities, and research properties with the PropStream Intelligence Assistant.

Pre-Foreclosure Opportunities? Just PropStream It!

Find, analyze, and connect with potential pre-foreclosure leads, all from one platform.

Activate Your 7-Day Free Trial

Frequently-Asked Questions (FAQs)

What is pre-foreclosure?

Pre-foreclosure is the period after a homeowner has defaulted on their mortgage—but before the lender completes the foreclosure process. During this time, the homeowner still owns the property and may have options to avoid foreclosure, such as selling the home, refinancing, negotiating a loan modification, or catching up on missed payments.

Is pre-foreclosure the same as foreclosure?

No. In pre-foreclosure, the homeowner still owns the property and typically has multiple options to resolve the delinquency. Once a foreclosure is completed, ownership transfers to the lender or another buyer, and the homeowner's options become much more limited.

Is pre-foreclosure activity increasing?

Yes. U.S. foreclosure filings reached 227,548 during the first half of 2026, representing a 21% increase year over year and a 28% increase compared to the same period in 2024.

Why should real estate agents pay attention to pre-foreclosure trends?

Rising pre-foreclosure activity means more homeowners may need guidance before losing their homes. Agents who reach out early with empathy and accurate information can help homeowners understand their options while creating opportunities to earn listings and build lasting relationships.

How can agents find pre-foreclosure leads?

Agents can use PropStream to search for properties with public default notices, filter by market, county, or ZIP code, and stack additional filters like equity, owner occupancy, years owned, or property condition to prioritize outreach.

What's the best way to contact homeowners in pre-foreclosure?

Approach every conversation with empathy. Avoid high-pressure sales tactics and instead educate homeowners about the options available to them. Personalized outreach through postcards, email, or phone calls can help establish trust.

What options do homeowners have during pre-foreclosure?

Depending on their circumstances, homeowners may be able to sell traditionally, refinance, negotiate a loan modification, complete a short sale, or enter into a lender-approved repayment plan. Agents should encourage homeowners to consult qualified legal or financial professionals for advice specific to their situation.

What mistakes should agents avoid when working with pre-foreclosure leads?

Common mistakes include waiting until the property reaches auction, treating every homeowner the same, using fear-based marketing, failing to understand local foreclosure laws, violating outreach regulations, and contacting homeowners without researching the property's background.

How can PropStream help agents prioritize pre-foreclosure opportunities?

PropStream allows agents to combine pre-foreclosure information with additional motivation indicators like equity level, owner occupancy, years owned, and property condition. This helps agents focus on homeowners who may be more likely to benefit from a conversation.

How can AI help agents prepare for conversations with pre-foreclosure homeowners?

PropStream's Intelligence Assistant can summarize a property's history, explain ownership details, identify potential selling points, and answer questions about property characteristics. These insights can help agents have more informed conversations while still relying on their own expertise and personal approach.

Subscribe to PropStream's Newsletter

*PropStream engages an independent third party to perform skip-tracing.